Merrilee’s Fire Info

Insurance Update - Crucial Info!

• Posted by Merrilee on January 10th, 2008, in Fire Families, Public Information, CFRT

UPDATE: So I got an e-mail from our city person who is coordinating with the fire families. . . . She says the building costs in Poway are closer to $250 for tract homes up to $400 for the custom homes. ARGH!!!! Increase your policies TODAY!!!!

It is always an eye opening experience to go through fire relief efforts when the families realize that 95% ARE UNDERINSURED. This time around some are underinsured OVER $1 MILLION.

So I called my insurance agent yesterday to check on my own personal insurance situation. And guess what, I WAS UNDERINSURED.
Now what’s interesting is I did the same thing after the Cedar fires and updated it but MY POLICY FAILED TO KEEP UP.

SO I HIGHLY RECOMMEND THAT YOU CALL YOUR INSURANCE AGENT TODAY.

Here are some questions to ask:

1. What is the cost per square foot that I am insured for? Currently, the rebuilding is costing about $200 (for smaller, tract homes) to $250 for the larger homes. I was only insured to $187 - even after an update four years ago . . . .And trust me, YOUR AGENT WILL ARGUE WITH YOU. So stupid . . . . mine even made the dumbest comment, “Well, I’m sure you could find SOME contractor who would rebuild for $190 . . .” Oh yeah, the worst one out there. How dumb is that? I had to demand that my policy be increased. And most of you will face the same situation. It is rather counterintuitive - you would think they would want to sell more . . . . But they don’t. DEMAND THAT YOU HAVE AT LEAST $200/sq. foot coverage.

2. Ask how long they cover living expenses. You want MINIMUM one year - and for large-scale disaster, you want at least two years.

3. Check on your personal property coverage.. You’d be astounded how much all that costs.

DO NOT DELAY ON THIS. CALL TODAY.

I asked the CARE guy - he’s the guy who travels all over the country helping victims of disasters deal with their insurance companies– (He’s been doing this for a LONG time.) who he recommended:
He said, “Chubb is the best and AAA is the second best.” He continued, “Everyone thinks they have State Farm and Farmers and they’re all set — they are NOT.”

I’ll just pass that along to you for what it’s worth. He commented that most policies are not geared toward total loss nor disaster loss. He also commented that A BIG MISTAKE WE MAKE IS JUST ASSUMING THAT THE INSURANCE AGENT IS PROTECTING OUR INTERESTS SUFFICIENTLY. That is a HUGE MISTAKE. WE must control our own coverage and not rely on agents to look out for us.

I just don’t want to be sitting in a meeting with you and have you say, “I had no idea I was underinsured! Merrilee, why didn’t you warn me?” I’m warning you now. I warned you all in the Cedar fires as well . . .

BUT I’ve learned